NZD/USD: Weakness to be only corrective, 200-DMA and YTD high at 0.6920/26 still in sight – Credit Suisse

NZD/USD is also to see further strength post the current setback. The kiwi should retest the 200-day moving average (DMA) at 0.6924/26, in the opinion of analysts at Credit Suisse.

Support at 0.6742/35 set to hold to prevent further setback

“NZD/USD closed last week lower and is showing further weakness on Monday. Our bias though is for this to be only a correction lower and we look for the 0.6775 support to ideally hold for a return back above the recent price high and the 50% retracement of the October down move at 0.6872/75.” 

“Beyond 0.6872/75 should raise the risk back higher again for a renewed test of the moving 200-DMA and the YTD high at 0.6920/26. Above here, next formidable resistance is seen at the 50% retracement of the 2021/22 down move at 0.6993/97. 

“Below 0.6775/73 can see weakness extend to the 55-DMA at .06742/35 but with a good floor still expected here. A close below here though would see the risk back lower again with support then seen next at the recent spike low at 0.6630/29, then 0.6601/6589.”